Re: [ vuZs.net ] FIN 630 & CS507

Plz Complete it thanks

Quick Ratio     = (current assets – Inventory) / (current Liabilities)

Quick Ratio     = ((937.000 + 200,000) – 212,000) / 409,000

Quick Ratio     = (1137, 000 – 212,000) / 409,000

Quick Ratio     = (925,000) / 409,000

Quick Ratio     = 2.261 times

Interest coverage Ratio = EBIT / Interest expenses

Interest coverage Ratio = (50, 15,000 / 2550, 000)

Interest coverage Ratio = 1.96 %

 

Earnings per Share = Profit available to Shareholders / Average common shares outstanding

Earnings per Share = EBIT-Interest Expenses -

Earnings per Share =

Earnings per Share =

 

Net Profit Margin = (Net Income/ Net Sales)* 100

Net Profit Margin = ( 3,09,40,000 / 105, 000,000) * 100

Net Profit Margin = (0.477) * 100

Net Profit Margin = 29.46 %

 

Ratio	Industry Average	Company Ratio Ranking	Ranking (Poor / Good)
Quick	1.75 Times
Net Profit Margin	35%
Interest coverage	16 Times
Earning per share	Rs. 1.35

On Fri, Nov 11, 2011 at 10:28 PM, Rizwan <mrizwanzahid@gmail.com> wrote:

marina last ratio remaning pls, solve it i am confu, be couse last ration

 

Best regards,

 

Rizwan

 

 

On Sat, Nov 5, 2011 at 12:01 PM, Marina Khan <damsel.khan@googlemail.com> wrote:

(fin630) Oh God very easy Assignment you got......let me solve 

Question #01. You are required to calculate the following:

 

Quick Ratio = Current assets - inventories / current liabilities

= 937 - 212 / 409

=1.77 times     

 

Net profit Margin = Profit after Tax / Net Sales x 100

= 50,150 / 105,000*100

= 47.7 = 48 %

 

Times Interest Earned (Interest Coverage Ratio) = BIT / Interest Expense

= 50,150 / 2,550

= 19.6 times

Ratios	Industry average	Company's ratio Ranking	(poor/good or low/high)
Quick	1.75 Times	1.77 times	good
Net Profit Margin	35%	48%	good
Interest coverage	16 Times	19 times	good
Earning per share	Rs. 1.35	?	?

because 

1. benchmark of Quick ratio is 1:1 n above then this consider as good 

2.Interest coverage : Increasing Ratio is favorable because it may attract the investors.

3. Net profit margin if increase good for the comapny n decrease not favorable 

Only 1 ratio left .......dont worry i'll solve it tomorrow.....if u find any mistake let me inform =)

--

Marina Khan 

www.vuzs.net 

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